Have ED and CBI Stepped Up Their Investigation into Anil Ambani's Companies?

Mumbai, July 26 (NationPress) The Enforcement Directorate (ED) has escalated its raids on the locations and individuals associated with Anil Ambani’s Reliance Group (RAAGA Companies) on Saturday, reportedly confiscating extensive documents, hard drives, and various digital evidence from multiple sites across Mumbai and Delhi.

The initial raids commenced on Thursday as part of an investigation into a money laundering case linked to the Yes Bank loan fraud.

The ED and the Central Bureau of Investigation (CBI) are conducting a comprehensive inquiry into alleged money laundering activities involving a sum exceeding Rs 24,000 crore, as per reports.

This operation is part of a wider investigation into suspected financial misconduct, including potential fund misappropriation, loan fraud, and money laundering.

The focus of the ED’s investigation is to determine whether bank funds were funneled through shell companies and misappropriated by group entities. Concurrently, the CBI has reportedly initiated its own investigation into additional firms within Anil Ambani’s Reliance Group.

Following the registration of FIRs by the CBI, the ED commenced its inquiry into money laundering activities by the RAAGA Companies under the Prevention of Money Laundering Act (PMLA). Other agencies, including the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, have also provided information to the ED, according to reliable sources.

The preliminary investigation by the ED has uncovered a meticulously executed scheme to misappropriate public funds by deceiving banks, shareholders, investors, and other public entities. The issue of bribery involving bank officials, including the promoter of Yes Bank Limited, is also under scrutiny.

Initial investigations have indicated illegal loan diversions totaling approximately Rs 3,000 crore from Yes Bank between 2017 and 2019. The ED has discovered that shortly before these loans were approved, money was transferred into the accounts of Yes Bank promoters. The agency is also probing the connections between bribery and the loan process.

The regulator has identified significant violations in the loan approval processes for RAAGA companies, noting instances where Credit Approval Memorandums (CAMs) were backdated, and investments were made without proper due diligence or credit analysis, contravening the Bank's Credit Policy, among other issues.

In breach of the loan agreements, these funds were redirected to numerous group and shell companies.

Additionally, it is reported that SEBI has shared its findings regarding RHFL with the ED, particularly highlighting a remarkable rise in corporate loans from Rs 3,742.60 crore in FY 2017-18 to Rs 8,670.80 crore in FY 2018-19, which is also under investigation by the ED.